KUALA LUMPUR: The 2025 Budget can be instrumental in helping the country meet the European Union's Deforestation Regulation (EUDR) requirements through targeted initiatives, according to Pacific Inter-Link Sdn Bhd (PIL).
PIL suggested the government to allocate resources toward promoting sustainable agricultural practices within the palm oil sector, supporting producers in adopting methods that align with EUDR standards.
Such resources, it said, could include subsidies for sustainable farming technologies and practices.
Other initiatives it highlighted include supporting research and development efforts focused on sustainability that can help identify new ways to improve yield and reduce environmental impacts.
It also said the 2025 Budget can allocate resources for investment in training programs for smallholders and farmers to enhance their understanding of sustainable practices and help them meet EUDR compliance.
"By strategically investing in these areas through the 2025 budget, the Malaysian government can support the palm oil industry in meeting EUDR requirements, thereby enhancing its competitiveness and sustainability in the global market," it said in a statement.
Besides suggestions for EUDR compliance, PIL also suggested for the government to establish supportive government policies that promote investment in the palm oil sector while balancing environmental and social considerations.
"In an era where technology plays a pivotal role in industry advancement, Pacific Inter-Link recommends increased investment in innovation.
"The budget should support the adoption of precision agriculture, digital tools for supply chain management, and traceability systems that can enhance productivity and transparency. These innovations and technologies will improve efficiency and competitiveness," it added.
PIL also called for the establishment of trade agreements that prioritise Malaysian palm oil and support local exporters in overcoming trade barriers in key markets, especially in Europe and North America.
"Expanding market access by exploring new international markets and strengthening trade relations, including reducing trade barriers and enhancing marketing efforts for Malaysian palm oil, will be beneficial for us.
"Banks or financial institutions need to play a vital role in the growth of destination markets across the globe by offering trade financing at competitive rates to agriculture exporters such as Pacific Inter-Link," it said.